National development strategies for development cooperation: A case of Uganda

Marios ObwonaEconomic Policy Research Centre, Kampala

Outlay of the presentation

IntroductionGovernment development

strategiesPoverty eradication Action

Plan (PEAP)• Plan for modernization of

agriculture (PMA)

Development cooperationPrinciples of cooperation

ChallengesConclusions

Introduction

Strategies aimed at reducing poverty. Enhance development effectiveness

by emphasizingNational ownershipPrioritizing poverty reduction and

sustainable development, andAddressing macroeconomic concerns

and structural and social issues

Objectives of government development strategies:Maintaining macro stabilityFurther liberalizing the economy to

promote diversified, export-oriented growth

Undertaking structural and institutional reforms

Government development strategies

Poverty eradication Action Plan (PEAP) Poverty eradication Action Plan (PEAP)

Overarching document that outlines the countries development aspirations targets and policy direction.

It lists sound priorities and outlines clear objectives and reflects a high degree of national ownership

Guided formulation of government policy since 1997

Prepared in 1997, revised twice 2000 and 2003

PEAP pillars Macroeconomic stability (IMF/WB-BoU and

MoF) Peace and security Good governance (Elections, Accountability,

rule of law, etc) Enhancing the incomes of the poor (PMA,

Micro Finance, etc.) Human development (UPE, Health, Water,

etc.)

PEAP formulation and implementation….

Do civil society and private sector play an active role in PEAP formulation and implementation?

The answer is YES

Formulation of PEAPHighly participatoryStrong involvement of civil societyConsultative workshopsRegional and political consultations

Civil society participation….

Both international and national NGOs participated in the PEAP process. A task force comprising of: International NGOS included: Oxfam (UK),

Action Aid (UK), VECO Uganda (Belgium), SNV (Netherlands) and MS Uganda (Denmark)

Uganda NGOs: Action for Development (ACFODE), Uganda Women’s Network (UWONET), Forum for Women Educationists (FAWE), UDN – the lead agency.

Academia and private sector participation…. Centre for Basic Research, Makerere

Institute of Social Research (MISR), Economic Policy Research Centre (EPRC)

Private Sector Foundation Uganda (PSFU)

PEAP and Planning process……

Framework within which the government’s planning effort is conducted

Guides the formulation of Sector Wide Approaches -SWAPs (education, health, water, agriculture, etc.)

Public expenditure implications of SWAPs are implemented through the budget under MTEF

Links between PEAP and SWAPs are iterative

Has become the country’s overall planning framework guiding preparation of detailed sector strategic plans based on the Sector Wide Approach (SWAPs)

PEAP sets the framework for other plans but it is also the product of those plans.

PEAP implementation…..

PEAP implementation – partnership approach Heavily dependent on donor aid – Gov has

strong ownership of policies PEAP gives the private sector and civil

society a clear and undisputed shared responsibility for implementing the plan

The private sector and civil society are welcomed both as providers of services and as counterbalance to government.

Program for modernization of Agriculture (PMA)

Program for modernization of Agriculture (PMA) is a blue print for eradication of rural poverty through pro-poor agricultural policies and activities

PMA pillars Research and technology development Agricultural Advisory Services (NAADS) Agricultural education

Rural Financial servicesMarketing and agro processingSustainable use and management of

natural resources; andPhysical infrastructure

Development cooperation

Subscribes to the same overall goals as the PEAP and uses the same indicators for monitoring achievements

Agrees that a holistic cross-sectional approach is necessary to reduce poverty

Buys into the budget support modalities to aid.

Development cooperation programmes focus on Poverty reduction-requiring a strategic, multi-

faceted and sophisticated approach Good governance and decentralization Economic growth and private sector

development Social development (health- HIV/AIDS

prevention and control, education, roads, water and sanitation, etc.

Democracy and human rights.

Principles of cooperation

Donor coordination/harmonization – Uganda Joint Assistance Strategy (UJAS)

Principle of recipient responsibility – that is cooperation based on Uganda’s development strategies.

Government of Uganda is responsible for planning, implementing (including procurement), monitoring and controlling activities in the cooperation programme.

Grants are reflected in public plans, budgets and accounts managed in accordance with national administrative standards and procedures – but to meet international standards and procedures

Donors consult at macro and sector levels with government regarding the profile and priorities of their cooperation.

Challenges…

Challenges…

Government revenue as a proportion of GDP stagnated around 13%, well below African average – level is too low to finance the present public sector service delivery and ensure the sustainability of the many donor-funded programmes.

Good governance is vital for creating a conducive environment for development. Serious capacity constraints exits in most private and public institutions.

Public service delivery, particularly at the local level remains weak and systems of ensuring accountability are still not working well.

An effective, responsible and accountable public service is key to implementing effective poverty eradication policies.

Conclusions…

Conclusions…

There is total alignment of donor development aid with national development strategies as well as the internationally agreed development goals like the MDGs.

The PEAP formulation and implementation has resulted in fewer aid conditionalities in Uganda.

Thank you